Please answer 1234
Solution :-
1) Equilibrium output is 50Kg and equilibrium price is $20.
2) Firm's Profit = Total Revenue - Total Cost
Total Revenue = 50Kg x $20 = $1000
Total Cost = 50Kg x $12 = $600
Profit = $1000 - $600 = $400
3) Supernormal profit.
When a firm earns supernormal profits, its AR are more than its ATC.
3) The Average revenue function is horizontal because in perfect competetion, Average Revenue(price) is constant/ fixed.
4) a) When MC is less than ATC, ATC is falling.
b) When MC is equal to ATC, ATC is at its minimum.
c) When MC is greater than ATC, ATC is rising.
1) Equilibrium output is 50Kg and equilibrium price is $20.
2) Firm's Profit = Total Revenue - Total Cost
Total Revenue = 50Kg x $20 = $1000
Total Cost = 50Kg x $12 = $600
Profit = $1000 - $600 = $400
3) Supernormal profit.
When a firm earns supernormal profits, its AR are more than its ATC.
3) The Average revenue function is horizontal because in perfect competetion, Average Revenue(price) is constant/ fixed.
4) a) When MC is less than ATC, ATC is falling.
b) When MC is equal to ATC, ATC is at its minimum.
c) When MC is greater than ATC, ATC is rising.